Owning a home is a dream that is shared by many young couples. A place to call their own and a place to raise a family is a dream that can be realized by carefully budgeting and saving money for the down payment.
A program in South Dakota helps couples. The Dakota Dream Savings Fund is a special matched savings account program to assist income eligible families and individuals build wealth and long term economic self sufficiency.
The Dakota Dreams fund is an incentive to encourage families and individuals to participate in a two to one match to their savings.
Karla Brozik of the Tripp County development office talked about this savings fund at the annual meeting of the South Central Development Corporation.
The program is open to individuals or families who meet certain criteria. Persons must be a resident of South Dakota, total household net worth cannot exceed $10,000, excluding primary residence and one vehicle.
Total household income that does not exceed 200 percent of poverty or 80 percent area median income.
The income guideline for a family of two is $31,860 and for a family of four is $48,500.
A savings match is a promise to supplement a participant’s savings deposits at a specific rate; in other words, a 3:1 savings match means that for every dollar participants save, they will have another 3 dollars added to their total savings at completion.
The program has four requirements that must be completed before participants can receive match funds:
• Desposit at least $25 into your savings fund each month of participation. Participants must save for at least six months before become eligible to use savings for a home purchase.
• Enroll in case management and meet regularly with a case manager to set and work toward personal and financial goals.
• Complete financial education.
• Complete a homebuyer education course
Dakota Dream Savings Funds may be used to purchase a home anywhere in South Dakota.